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Bally’s Corp. Seeking Investors for Chicago Casino Resort, White Men Need Not Apply

Bally’s Corporation, based in Rhode Island, is providing a 25% equity interest in its $1.7 billion integrated resort project in Chicago. 

Operating as Bally’s Chicago, Inc. in Illinois, the gaming firm announced on Monday the start of an initial public offering to sell 25% of the company to investors. The IPO is limited to individual investors who are either female or part of a minority group. Investing organizations “should be managed by women or minorities.” 

Eligible minorities encompass investors who are Black, Indian, Asian, Hispanic, Arab, or part of any other group "determined by the City of Chicago to be socially disadvantaged due to experiencing racial or ethnic discrimination or cultural bias within American society," as detailed in the Bally's Chicago presentation. 

The proposal features investment amounts between $250 and $25,000 to generate $250 million. Bally’s is currently demolishing the Freedom Center, which was the former printing plant for the Chicago-Tribune and Chicago Sun-Times. In November 2022, Bally's acquired the property located at Chicago Avenue and Halsted Street in the River West area of the city for $200 million. 

Minority Sale Portion of Host Agreement 

After receiving support from then-Mayor Lori Lightfoot (D) and the Chicago City Council, Bally's committed to numerous pledges and advantages for the Windy City. A key term of the project’s Host Community Agreement (HCA) between Bally’s Chicago and the city is that the company would incorporate a substantial minority and women ownership stake.

"Developer commits that 25% of the project equity will be owned by minority individuals and minority-owned and controlled businesses,” the HCA terms read. “[The] developer shall provide commercially reasonable efforts to locate qualified minority individuals or minority-owned and controlled businesses who wish to buy an interest.”

Bally’s states it “will have the option but not the obligation” to pay dividends, although the firm plans to distribute quarterly payments. Bally’s is alerting prospective investors that putting money into the Chicago casino is “extremely risky and speculative” and only individuals who can “bear the loss of their full investment” should engage. 

The City of Chicago intends to utilize the tax advantage from the permanent Bally’s Chicago venue to support its pension plan for first responders. Chicago authorities anticipate generating approximately $200 million each year from the casino once it becomes operational. 

Bally’s plans to launch the Windy City resort in September 2026. In the interim, Bally's is still running a temporary gaming venue within the Medinah Temple located at 600 N. Wabash Ave. 

Underrepresented Workforce 

Along with committing to a 25% ownership stake for minorities and women in Bally’s Chicago, Soo Kim’s Standard General has vowed to employ women, minorities, and underrepresented communities at the site permanently. 

The Bally’s Chicago HCA states that the resort aims to employ minorities in 60% of its positions. At least 45% of the roles ought to be occupied by women. The casino will strive to guarantee that 10% of its workforce consists of veterans and individuals with disabilities. 

“Bally’s plans to partner with well-respected workforce development non-profits and community-based organizations in Chicago, such as Skills for Chicagoland’s Future, Women Employed, Washington Heights Workforce Center, and Chicago Urban League (as well as others) to achieve the stated employment goals,” the HCA reads.